Silver Price Analysis: XAG/USD hits one-week tops, bulls challenge $25.50-60 key hurdle
- Silver edged higher for the third consecutive session and shot to one-week tops on Thursday.
- A sustained move beyond the $25.60 region needed to support prospects for additional gains.
Silver prolonged this week's positive momentum and continued scaling higher for the third consecutive session on Thursday. The momentum pushed the white metal to one-week tops, around the $25.60 region during the early European session.
The uptick, however, lacked any follow-through and struggled to find acceptance above the 61.8% Fibonacci level of the $26.64-$23.78 downfall. This, in turn, warrants some caution before positioning for any further appreciating move.
Meanwhile, technical indicators on hourly charts have been gaining positive momentum but are yet to confirm a bullish bias on the daily chart. This further makes it prudent for the bulls to wait for a sustained move beyond the $25.60 level.
The XAG/USD might then accelerate the momentum and aim back to reclaim the $26.00 mark for the first time since March 22. The next relevant bullish target is pegged near the $26.40-50 area, which if cleared should pave the way for additional gains.
On the flip side, the 50% Fibo. level, around the $25.20 region now seems to protect the immediate downside. This is followed by the key $25.00 psychological mark, which if broken decisively will negate the near-term positive outlook for the XAG/USD.
The subsequent technical selling below the 38.2% Fibo. level, around the $24.85 region will shift the bias back in favour of bearish traders. The XAG/USD might then turn vulnerable and slide further to the $24.45 region, or 23.6% Fibo. en-route the $24.00 mark.
XAG/USD 4-hour chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
